Everyone knows blockchain technology to be one of the safest ways to secure any data and assets, especially when it comes to cryptocurrency.
However, companies can also use it to cut down their expenses significantly. For example, statistics show that banks can use this technology to reduce 30% of their infrastructure costs.
But what about the blockchain software development industry? How can it apply blockchain to draw maximum benefit from it?
Let’s find out.
1. Smart Contracts to Eliminate the Mediator
First, when speaking about blockchain, we can’t skip mentioning smart contracts. Essentially, it’s a piece of code containing certain demands, and once they are met, the contract gets executed automatically.
Here’s how smart contracts work, according to BitPanda Academy:
Credit: BitPanda Academy
If we’re talking about applying this in blockchain software development, we can take a simple booking app as an example. For instance, you’ve rented a car before going on a trip to Italy. To make sure your money doesn’t go down the drain, you’ve also purchased a renter’s insurance.
Next, your rental gets canceled, but your renter’s insurance was automatically placed on a blockchain upon signing it. As a result, when you receive the cancellation notification, you also automatically get reimbursed.
In other words, a smart contract eliminates a middleman (which would be an insurance company in this case), and you don’t have to go through a tiring investigation to get your money back.
2. Recording the Blockchain Software Development Lifecycle
If we imagine the software development process, it looks very straightforward:
- Planning
- Analysis
- Design
- Implementation
- Testing & Integration
- Maintenance
However, it’s not that easy in practice. In reality, you get lots of hiccups, bottlenecks, and errors, so you often have to go back from design to planning or from integration to analysis. It can be pretty challenging to document this process, but that’s where blockchain enters the scene.
Basically, this technology allows documenting and tracking all the changes in the software development cycle. Besides, no one can make alterations on a whim since it’s mandatory to get approval from all nodes involved in the system. Kiss.Software uses this approach during software development, and it has proven to be safe and effective.
Speaking about that, blockchain also offers higher levels of encryption, meaning that your data won’t leak anywhere, and no one from outside the organization can steal it.
3. Better Personal Security
SaaS companies and businesses with enterprise apps often have to ask their users to share personal data. While it’s crucial for businesses (they get to provide personalized product offers, for example), not many people can entrust their private information to someone they barely know.
In fact, 63% of internet users say most companies aren’t transparent about how they use customer data. So, when developing your software, the focus should be on protecting personal user information, and you can use blockchain in this case as well.
First and foremost, you can use this technology to implement decentralized identification, where people are the only owners of their data, meaning that no one, including you, can’t sell or manipulate it.
A good example of applying blockchain in software for this purpose would be healthcare-related programs. Essentially, doctors, lab professionals, or researchers would have to ask patients for permission to use their data. As a result, this information won’t be misused, which often happens in the healthcare industry.
Wrapping Up
As you can see, there are quite a few use cases for blockchain in software development, and we mentioned only a fraction of them. In reality, there are many more options to use this technology for your benefit, apart from protecting privacy, improving automation, and securing the software development lifecycle.